IRBM E-INVOICING WITH NEW SALES AND SERVICES TAX

Module 1: Overview and requirements of e-invoicing after implementation

1. Overview of IRBM E-invoicing latest updates

• • MADANI digitalisation agenda e-invoicing phases for businesses.
  • IRBM related offences if failure to comply
  • Latest tax incentives for investment in digitalisation for-e invoice implementation (Budget 2024 & Budget 2025-if applicable)
  • Digital grant application from Malaysian Digital Economic Corporation (MDEC) for Micro Small Medium Enterprises (MSME)

2. Types of e-invoice format (consolidated e-invoice (applicable to certain B2C transactions), individual e-invoice (B2B and B2G transactions) and self-billed e-invoices and self-billed credit/debit notes.
3. Sales and Service Tax (based on 1 July 2025 Sales Tax Order and Service Tax 2018 Amendment)

• • Overview of SST, SST Threshold and Criteria of Taxable Services and Taxable Persons.
  • Parties exempted from paying SST.
  • Rates of service tax for new sectors affected – Construction, Leasing, Private healthcare services for Non Citizens, Education and Financial Services
  • How to apply B2B exemption for service tax returns and filing in mySST
  • How to apply sales tax exemption for new and existing manufacturers and traders who produce exempted goods/services after 1 July 2025
  • Fields that need to be keyed during e-invoicing issue.
  • Sales tax refund for bad debts.

Module 2: E-invoicing workflow process in myInvois portal

4. IRBM e-invoice general workflow from pre submission step and e-invoicing reporting processes for organisations-Manual Process

• • Instant validation process by IRBM using Continuous Transaction Control (CTC) model
  • What is E-Invoice PEPPOL network?
  • Taxpayer Identification Number (TIN) validation
  • Scenarios of seller cancellation and buyer rejection, and resubmission of e-invoices within time frame window.
  • Amendments of e-invoicing invoices processes to IRBM
  • 72-Hours grace period for e-invoice cancellation by seller and rejection by buyers
  • Issuing Debit Notes and Credit Notes for adjustments.
  • The role of refund notes to buyer which is also component of e-invoice

5. Understand the components of e-Invoice issue requirements in MyInvois

• • Supplier’s TIN, business registration number, MSIC code update in MyInvois profile management
  • Buyer’s TIN including GENERAL TIN (Appendix 1 IRBM guidelines)
  • Supplier’s business registration number/Identification Number/Passport number
  • Generating e-invoice code/number and date – without ERP API integration
  • Description of Product or Service column
  • Tax type – Tourism Tax, Sales Tax, Service Tax, Low value goods tax, Exemption from tax
  • Tax rate
  • Tax amount
  • Total excluding tax
  • Total including tax
  • Prepayment and billing frequency
  • Import and Export information (Mandatory for IRBM and Royal Malaysian Customs data harmonisation) for self-billed e-invoices.

6. Post implementation Impacts on business operation and essential financial process (Accounts Receivable and Accounts Payable) and its related functions.

Module 3: E-invoicing requirements for specific transactions (IRBM Specific guidelines (Oct 4^th 2024 latest update)

7. Types of income or expenses that requires e-invoicing as proof of income and proof of expenses

8. Creation/Issuance of e-invoice relating to various scenarios-MyInvois

• E-invoices creation – Seller to Buyer
• Self-billed e-Invoices – How to issue self-billed e-invoices based on related scenarios with general BUYER TIN numbers for domestic, import and export transactions
• Commission payments to agents, dealers, distributors (monetary or non-monetary benefit)-periodic statements and basis used (accrual or paid) basis.
• vii-Issuing e-invoices
• Applicable for retail services/service management/property development/investment holding industries income ie
  • recurring fees and progress billing
  • refundable deposits, non-refundable deposits, advance payments (prepayments),
  • inter-company charges
  • interest income/expense, dividend income, dividend expense, investment income, rental income, treatment of utilities bills under rental arrangement, loyalties points, vouchers and gift points.

9. Obtaining e-invoices supporting from suppliers

• Transactions with Buyers – How to obtain e-invoicing from retail suppliers for staff claims and reimbursement
• Statements/ Bills on a periodic basis from suppliers– Applicable to specific industries only (telecommunications, healthcare, insurance
• Disbursement and reimbursements with third parties’ arrangement
• Employment perquisites and benefits, directors’ fees & certain expenses incurred by employee on behalf of the employer